FxWirePro: USD/CNY steady start to week as trend higher continues

• USD/CNY strengthened on Monday as the yuan weakened, following China's central bank's pledge to stabilize the currency amid falling bond yields and capital outflows.

• The yuan is likely to experience greater downward pressure next year as Chinese authorities plan more monetary easing in response to a potential trade war with the U.S..

• On the data front, China's industrial output in November rose 5.4% year-on-year, accelerating from the 5.3% growth in October.

• However, retail sales, a measure of consumption, grew at their slowest pace in three months, increasing just 3.0% in November, compared to a 4.8% rise in October.

• At GMT 06.26,the dollar was up 0.11% at 7.278 against Chinese Yuan .

 •  Immediate resistance is located at 7.283(23.6%fib), any close above will push the pair towards 7.292(Higher BB)

• Support is seen at 7.266(Dec 13th low) and break below could take the pair towards 7.247(38.2%fib).

Recommendation: Good to buy around  7.270 with stop loss of 7.200  and target price of 7.350